“Tax cuts to the rich create jobs”. “Tax cuts for the working poor and middle class stimulate the economy”. Only one of these is true, and it is time to figure out which. And we can, using some basic math.

Is taxing the rich socialism? Is it “un-American” to ask the rich to pay more taxes? Or is income inequality at the root of our economic problem? And how can we know which is the “right” theory? On the one hand you have Democrats calling for an increase to the minimum wage, affordable health care for all and an increase in both the benefit and wage base of the Social Security system as a method of putting more money on “Main Street” to stimulate the economy. On the other side you have Republicans insisting we give more money to “Wall Street” and just saying no to everything until they get their way.

In order to decide who is really “right”, I decided to do some math. I find that when I can break an argument down to mathematical components it provides useful data to help me understand the issues better.

Here are some computations and assumptions for this problem:

An average family needs to make approximately $4,000 per month, net of taxes to cover all expenses. That comes to $23.08 per hour net, which is $27.69 gross for a base hourly wage if we assume average taxes paid equal 20%.

That is the minimum wage at which a person does not “need” any assistance to pay for living, insurance, food, transportation and health care. It does not include saving for retirement, vacations or other expenses that are “discretionary”, for example vacations, gifts, going out to dinner or the movies, buying clothes or getting your hair cut or nails done. And forget about getting sick and not being able to work, republicans don’t want paid sick leave either.

Now, let’s compare discretionary income and how taxes work, and how a tax cut or increase impacts different income levels:

I can make high-probability predictions for 2015 and the near-beyond without the benefit of a crystal ball, tarot cards or tea leaves. The only thing that I need is a list of items from the new 2015 U.S. federal budget. Here are some of my forecasts and the budget items that make them so highly probable:

1. There will be more deadly truck-related accidents than necessary on the nation’s highways in 2015. That means more deaths, injuries, highway delays, stress and frustration. How do I know? Because the 2015 budget rolls back the safety requirement that truckers need to get more rest between driving assignments. The regulation that was rolled back was itself barely adequate. It restricted drivers to a 70-hour week with mandated rest times between long periods behind the wheel. Nonetheless, despite obviously being in the public interest, this regulation could not survive the pressure of the lobbies representing the trucking industry and its corporate customers. Now we are back to truckers working 85-hour weeks with hardly any mandated rest at all.

2. Either in 2015 or soon thereafter there will be another major banking crisis requiring the outlay of enormous sums of public money to avert economic meltdown. How do I know? Because the 2015 federal budget rolls back the requirement, put in place after the last financial crisis, that forced the trading of derivatives to be done by corporate entities separated from the banks and not covered by the Federal Deposit Insurance Company. In other words, if the banks wanted to devise unreasonably risky investment strategies for their more gullible customers, they had to insulate these strategies from their main banking operations that are crucial to the national economy. In addition the government was not required to insure such undue risks through the Federal Deposit Insurance Corporation. Although obviously in the public interest, these regulations could not survive the pressure coming from the banking lobbies and so, once more, we all must be prepared to pay the price of this version of insufficiently regulated capitalism.

3. The political influence of the nation’s wealthiest individuals will increase by a factor of ten in 2015, making the United States more of a plutocracy and less of a democracy than at any time since the 1920s. How do I know? Because the new federal budget emasculates what little was left of the 2002 McCain-Feingold Bipartisan Campaign Finance Reform Act by increasing tenfold the amount of money individuals can give to political parties. This is the result of conservatives’ demanding that political campaigns be underwritten wholly by private funds. Common sense tells us that such an arrangement can only confirm political power in the hands of those who are already economically dominant. By the way, most countries claiming to be democracies regulate against just this dominance of private money because it is recognized as politically corrupting.Continue reading →

Equality Fraternity Reality

Strong children

"It is easier to build strong children than to repair broken ones" —Frederick Douglass

Ignorance and Power

“Ignorance allied with power is the most ferocious enemy justice can have.” -- James Baldwin

Money is power….

"Money is power. In Congress, in state legislatures, in city councils, in the courts, in the political conventions, in the press, in the pulpit, in the circles of the educated and the talented, its influence is growing greater and greater. Excessive wealth in the hands of the few means extreme poverty, ignorance, vice, and wretchedness as the lot of the many.”
— Rutherford B. Hayes, President of the United States 1877-1881

Let the people think….

Let the people think they govern, and they will be governed.”
-- William Penn, Some Fruits of Solitude, 1693

Taxes & budgets

Women's rights

Dehumanization

"The propagandist's purpose is to make one set of people forget that certain other sets of people are human" - Aldous Huxley

Money is power

Money is power. In Congress, in state legislatures, in city councils, in the courts, in the political conventions, in the press, in the pulpit, in the circles of the educated and the talented, its influence is growing greater and greater. Excessive wealth in the hands of the few means extreme poverty, ignorance, vice, and wretchedness as the lot of the many.”
-- Rutherford B. Hayes, President of the United States (1877-1881)

Riots

“Riots are the language of the unheard” -- Martin Luther King, Jr.

Cost of War

Currently nearing $1.6 trillion, for Iraq and Afghanistan alone; watch it grow at Cost of War

The cause of war

"The cause of war is the preparation of war." -- W.E.B. DuBois

Presidential limits

"The president does not have power under the Constitution to unilaterally authorize a military attack in a situation that does not involve stopping an actual or imminent threat to the nation."

--Barack Obama, 2007

Totalitarianism

“To be corrupted by totalitarianism, one does not have to live in a totalitarian country.”

-- George Orwell

Reimagining capitalism

"Politicians argue over big government so they can avoid talking about big capitalism" -- William Greider in The Nation

The problem with democracy

Progressive calendar

Click hereto view calendar of progressive events in and near Chester County.Agenda view (click in upper right of calendar) may be best.

Links to other sites:

Let the people think …

"Let the people think they govern, and they will be governed."
--William Penn, Some Fruits of Solitude, 1693

On humor

"When oppressed peoples have no other remedy they resort to humor" --E. O. Wilson

Koch Brothers index

For a list of all posts relevant to the Koch Brothers on this site, click here.

Truth and consequences

"If one tells the truth, one is sure, sooner or later, to be found out." -- Oscar Wilde

Power

“Power concedes nothing without a demand. It never did and it never will. Find out just what any people will quietly submit to and you have found out the exact measure of injustice and wrong which will be imposed upon them, and these will continue till they are resisted with either words or blows, or both. The limits of tyrants are prescribed by the endurance of those whom they oppress.”

-- Frederick Douglass, 1817-95

Schools, parents, democracy

“What the best and wisest parent wants for his child, that must we want for all the children of the community. Anything less is unlovely, and left unchecked, destroys our democracy.” -- John Dewey

Search

Liberty v. power

“The love of liberty is the love of others; the love of power is the love of ourselves.”
-- William Hazlitt, 1778-1830

On war

"No matter what political reasons are given for war, the underlying reason is always economic." - A. J. P. Taylor

Bill Moyers says

"The opposite of poverty is not wealth; it is justice."

Ain’t they got no shame

In the name of peace
They waged the wars
Ain't they got no shame

-- Nikki Giovanni

Need & Greed

"Earth provides enough to satisfy every man's need but not for every man's greed" -- Gandhi

Normalcy?

"If this is normalcy, I'd hate to see what real trouble is" - the late Daniel Shore on Iraq, Morning Edition, NPR, 3/29/08

Freedom and tyranny

"...So long as the people do not care to exercise their freedom,
those who wish to tyrannize will do so; for tyrants are active and ardent, and will devote themselves in the name of any number of gods, religious and otherwise, to put shackles upon sleeping men." --Voltaire, 1764

Thoughts on War

"Every war, when it comes, or before it comes, is represented not as a war but as an act of self-defense against a homicidal maniac." -- George Orwell

"You may not be interested in war, but war is interested in you." -- Leon Trotsky

Total Cost of War

The cost of the Afghanistan and Iraq wars to Pennsylvanians alone is over $57,000,000,000 and to the entire US is over $1.3 trillion; now wouldn't that be helpful in Harrisburg and DC these days? Track our dollars' alarming and destructive disappearance at CostofWar.com

The American oligarchy

“The American oligarchy spares no pains in promoting the belief that it does not exist, but the success of its disappearing act depends on equally strenuous efforts on the part of an American public anxious to believe in egalitarian fictions and unwilling to see what is hidden in plain sight.” — Michael Lind, To Have and to Have Not